HELMA Eigenheimbau AG — Earnings Release 2007

Feb 29, 2008

News Details

Corporate | 29 February 2008 09:09

HELMA Eigenheimbau AG announces preliminary figures for the 2007 financial year and outlook on 2008

HELMA Eigenheimbau AG / Preliminary Results

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HELMA Eigenheimbau AG announces preliminary figures for the 2007 financial
year and outlook on 2008

• Consolidated gross performance declined to around € 45 million, lower
  EBIT at € -5.0 million
• Incoming orders increased by 7.7 percent to € 58.9 million
• Key structural measures implemented
• Cost reduction program set to deliver € 2.0 million savings, fully
  effective in 2008
• Consolidated sales of € 50 – 60 million, as well as positive EBIT
  expected for 2008

Isernhagen, February 29, 2008 – According to preliminary figures the gross
performance of the HELMA Group dropped to around € 45 million in the 2007
financial year. The preliminary earnings before taxes and interest (EBIT)
have dropped to around € -5.0 million, and are thereby considerably below
the last forecast issued.

The decline in results is attributable to the difficult market situation in
construction of owner-occupied houses and the associated weak domestic
demand, which have also impacted on HELMA Eigenheimbau AG. As a result,
sales revenues have developed below planned figures, and the company has
failed to generate significant planned earnings contributions. Moreover,
the unexpectedly long throughput times in the newer regions, as well as
personnel investments required for expansion have had negative effects on
the result. The partial final settlements effected in 2006 due to the value
added tax rise as of January 1, 2007, also incurred additional burdens on
the result.

On the other hand, in 2007 HELMA Eigenheimbau AG succeeded in considerably
expanding its market share and increased the number of houses sold against
the very weak branch trend from 365 to 380 units. At an average net sales
price of T€ 155, this results in net order intake of € 58.9 million,
representing a gain of 7.7 percent over the prior year. As of December 31,
2007, the net orders on the books came in at € 47.9 million, which is 6.4
percent above the prior year figure.

COMPANY REPOSITIONED, COST REDUCTION MEASURES ALREADY FULLY EFFECTIVE IN
2008:

The management of HELMA Eigenheimbau AG has responded to the developments
of the past business year and has given the company a new structure and
leaner organization with the aim of achieving a rapid return to
profitability. Moreover, the implementation of a cost reduction program
started in October 2007 that will generate cost savings of up to € 2
million (€ -1.2 million personnel costs, € -0.8 million non-personnel
costs) and will already be fully effective in the 2008 financial year.

In connection with the expansion in the new sales regions, a considerable
decline in the gross margin to as far as 12 percent had occurred in 2007.
The problems attributable to the very rapid pace of growth, which also
incurred an increase in average throughput times to 13 months, have been
successfully solved in the meantime. Consequently, the average throughput
times will be reduced to well below 12 months in 2008.

Moreover, thanks to the structural measures implemented, the gross margin
has already returned to a current level of 17 to 18 percent.

In future, given the structural and cost saving measures conducted, the
breakeven point in consolidated EBIT is expected to be already attained at
a performance of € 45 million, corresponding to the construction of around
300 houses. Nevertheless, the upwards potential has also not been too
strongly limited, as the company’s current structures and capabilities
would also enable the construction of up to 500 houses.

EXPANSION OF SALES REGIONS:

The expansion of sales regions envisaged for the 2007 business year and the
associated construction of a numerous model houses was implemented as
planned. In the years 2006 and 2007, the funds from the stock market
flotation were used according to planning and invested with the aim of
advancing HELMA Eigenheimbau AG from a regional player to a nation-wide
provider of construction services, thereby generating considerable
additional sales potentials.

With regard to the 2008 business year, further major investments are
neither intended, nor necessary. The completion of the new company location
in Lehrte will not result in any further impact on liquidity in this year,
as the entire appropriated own funds have already been expended, and
further work necessary for completion can be covered by external financing.

SOLID LIQUIDITY POSITION:

As of December 31, 2007, HELMA held cash in hand of € 3.9 million; at
present, free liquidity amounts to some € 5.0 million. In addition, the
company has credit lines available of several million euros. With these
resources at hand, HELMA has adequate liquid funds for the implementation
of the further company strategy, as well as the attainment of the short and
medium term company goals.

OUTLOOK:

With regard to the 2008 financial year, the management board of HELMA
Eigenheimbau AG is anticipating consolidated sales of € 50 to 60 million.
EBIT is expected to come in between the breakeven point as lower limit, and
a figure of € 1.0 million as upper limit. In view of the extended sales
region, HELMA is assuming sales of between 450 and 550 houses in 2008. This
planning is based on a stagnating market environment.

The annual report presenting the final figures for the 2007 business year
and a detailed outlook will be published on April 21, 2008.

ABOUT HELMA EIGENHEIMBAU AG:

HELMA Eigenheimbau AG is a customer-oriented full-service construction
service provider. The company’s focus lies on the development, planning,
sale and construction management of turn-key or partly finished
single-occupancy and semidetached houses in massive construction or element
massive construction. The company’s tailored planning and individualisation
at no extra cost as well as its in-depth expertise in the field of
energy-efficient construction are particularly perceived by the market as a
unique selling point of HELMA Eigenheimbau AG. As a property developer, the
HELMA Wohnungsbau GmbH & Co. KG subsidiary complements the service range of
the HELMA Group. HELMA Eigenheimbau AG (ISIN: DE0000A0EQ578) has been
listed in the Entry Standard of the Frankfurt Stock Exchange since 19
September 2006.

FINANCIAL CALENDAR:

April 21, 2008: Annual report 2007
April 29-30, 2008: Entry and General Standard Conference, Frankfurt
July 4, 2008: Annual General Meeting
September 30, 2008: Semi-annual report 2008
October 21-22, 2008: Specialist Conference of the Real Estate Equity
Initiative

UBJ. GmbH
Gerrit Janssen
Haus der Wirtschaft, Kapstadtring 10
D-22297 Hamburg
Telephone: +49 (0)40 – 63 78 – 54 14
Telefax: +49 (0)40 – 63 78 – 54 23
E-Mail: gerrit.janssen@ubj.de

29.02.2008 Financial News transmitted by DGAP

Language: English
Issuer: HELMA Eigenheimbau AG
Jathostrasse 10
30916 Isernhagen
Deutschland
Phone: +49 (0)511 90190 13
Fax: +49 (0)511 90190 11
E-mail: rieger@helma.de
Internet: www.helma.de
ISIN: DE000A0EQ578
WKN: A0EQ57
Listed: Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart; Entry
Standard in Frankfurt

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